I have found an example of one such stock and how to play it with options. Second, I look for net income or adjusted earnings per share growth to exceed that of the S & P 500 comfortably. The S & P has delivered remarkable long-term earnings growth, doubling in the past 10 years, a compound annual growth rate (CAGR) of nearly 8%. Most companies don't have the inherent benefits of diversification that an index has or the expected lifespan, so a decent track record of greater than 10% annual earnings growth is probably a suitable starting point. Adobe (ADBE) — known for brands such as Acrobat and Photoshop and their creative cloud offering — is one of the largest diversified software companies.

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Persons: Peter Lynch, Sell Organizations: YTD Traders, CNBC, NBC UNIVERSAL